All Topics / The Treasure Chest / house or buyer

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  • Profile photo of Pro investorPro investor
    Participant
    @pro-investor
    Join Date: 2003
    Post Count: 108
    March 17, 2003 - 12:04 pm

    Hi

    Could anyone please tell me when they did there first wrap did they find the buyers first or the house.

    Thanks Rob[8D]

    Profile photo of HurricaneHurricane
    Member
    @hurricane
    Join Date: 2003
    Post Count: 10
    March 17, 2003 - 12:29 pm

    Hi Robert

    Thankyou for raising this question as it is something I have been curious about also.

    Do you put in an add, and develop a database if you like of potential wrappees?

    Or put in an add, after you find the house and hope there are takers?

    Profile photo of RickDeMarcoRickDeMarco
    Member
    @rickdemarco
    Join Date: 2002
    Post Count: 2
    March 18, 2003 - 1:23 am

    This is also something I am very interested in. Do I find the house first and then on-sell, or do I let the buyer find the place and then buy (as long as it meets my requirements)…

    Any experiences on either way would be most valuable…

    Thanks, Rick

    Profile photo of oscaroscar
    Member
    @oscar
    Join Date: 2002
    Post Count: 41
    March 18, 2003 - 1:40 am

    Hi Guys [:)]

    You can pretty much do it any way you want. I have wrapped with the purchasers finding the house first and alternatively, I have bought the house first and then wrapped it. You will find everyone has there own way.

    I would probably recommend having the purchaser find the house initially. Place an ad and get them to do the leg work. This way you will get some experience under your belt and most likely reduce the emotional rollercoster ride associated with the process. This is what I did.

    At the end of the day it boils down to this:

    Choose one method and JUST DO IT!! It’s not as hard/scary as you may think it is. Just make sure you complete your market research e.g. ‘know your area’.

    Hope that helps [;)]

    Oscar

    Profile photo of Pro investorPro investor
    Participant
    @pro-investor
    Join Date: 2003
    Post Count: 108
    March 18, 2003 - 11:32 am

    Hi Oscar

    You said that you find the buyer first what do you do when you put an ad in the paper and you get 5 good candidates. working on houses around 65’000 that would be 13’000 20% deposit each house or do use equity from your other propertys such as rentals you may have or do you go and find investors or do you wrap a house to one person and than save up more money for the next wrap to the others (which could take some time).

    Please reply i’d really like to know what other wrappers do.

    Thanks Rob[8D]

    Profile photo of oscaroscar
    Member
    @oscar
    Join Date: 2002
    Post Count: 41
    March 19, 2003 - 12:10 am

    [:D]Hi Robert

    I have done my wraps with 5% and 10% deposits. This means that I have used LMI (Lenders Mortgage Insurance). This way, my money into the deal is low and I end up with returns of infinity.

    For e.g.

    I wrapped a house in Traralgon a little while ago.
    Purchase price: $87,000
    Deposit required plus costs: $8,700’ish
    Deposit from purchaser: $1,900 plus FHOG = $8,900

    End result: no money in the deal.[:D]

    Unfortunately, the Mortgage Insurance companies cut you off at a point of time by telling you that you have maxed out. So now I have to become creative or put down 20%.

    In my opinion, this is too much to tie in for a single wrap deal. Others may not agree.

    Happy Investing [8D]

    Oscar

    Profile photo of StonewallStonewall
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    @stonewall
    Join Date: 2003
    Post Count: 2
    March 19, 2003 - 2:47 am

    hi guys.
    I think you can use the equity in the first houses you wrapped eg: if you depositted 5% for your first 4 wraps and they were all approximately the same price then you have 20% equity that you can use to buy your next property.

    Profile photo of NathanNathan
    Member
    @nathan
    Join Date: 2002
    Post Count: 77
    March 19, 2003 - 3:42 am

    quote:

    hi guys.
    I think you can use the equity in the first houses you wrapped eg: if you depositted 5% for your first 4 wraps and they were all approximately the same price then you have 20% equity that you can use to buy your next property.

    Hi Stonewall,

    Sorry, you can’t use the equity that you have in other wrapped properties for deposit + costs on a new acquisition. On another note if you only have 5% equity in an investment property you can’t borrow more against it as 95% is the cut off for investment lending (although there are talks of a 97% investment product comming out for strong applicants).

    Cheers and happy investing,

    Nathan[:)]

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